Cap reform and the third world

Madam, - Oxfam has never sought the elimination of decoupled payments to farmers as Mairead McGuinness MEP (October 21st) suggests…

Madam, - Oxfam has never sought the elimination of decoupled payments to farmers as Mairead McGuinness MEP (October 21st) suggests. What we do call for is intelligent Cap reform that stops undermining the livelihoods of the poor overseas and also properly addresses our own rural development and environmental needs.

Sadly, despite the 2003 Cap reforms, there is no end in sight to the dumping of European agricultural surpluses on poor countries. The sheer volume of subsidies - tens of billion of euro still being paid annually to EU producers - will inevitably confer an artificial and unfair advantage when big EU agribusiness exports its surplus output.

The lack of progress in the current WTO negotiations (of vital importance to Ireland's open economy) is directly linked to the unwillingness of rich countries to make progress on agriculture. Pascal Lamy, former EU trade commissioner and now WTO director-general, is warning that there is no point in going ahead with the important December meeting in Hong Kong without a more ambitious proposal from Europe. The entire Doha Development Round is in severe danger of complete collapse.

This should not be seen as simply a zero-sum game. The bulk of Cap payments go to larger landowners and big agribusiness rather than to smaller farmers. The very rich could have their subsidies capped; and support could be better targeted to meet social and environmental objectives.

READ MORE

Yet our government aims to seek "the maximum possible protection from increased competition from third country imports", as agriculture minister, Mary Coughlan, stated in her recent ardfheis speech.

World Bank president Paul Wolfowitz wrote recently in the Financial Times: "The Doha Development Round of trade talks will be judged by one simple test: does it enable people in poor countries to sell more of their goods overseas, creating more jobs and lifting their incomes?" There is still time - just - to gain this outcome, and in the process to secure future prosperity for all. - Yours, etc,

BRIAN SCOTT, Executive Director, Oxfam Ireland, Dublin 2.